This report is AI generated based on Lee Adler’s analytical framework.
Wall Street’s obsession with inflation got another reality check this morning. The CPI print landed, and the market’s reaction was swift—straight down. The question now: was this a panic-driven shakeout, or the start of a deeper selloff?
The Setup
Before this morning’s CPI drop, the S&P 500 futures (ES) had been consolidating just above 6060, attempting to hold onto recent gains. The cycle-based market projection suggested an underlying bearish drift, but bulls had managed to keep prices from accelerating lower.
Then CPI hit—and in a matter of minutes, we were staring at 6010, testing the CMAP of 6008, a level already projected as an important pivot.
Where Do We Go From Here?
- The 6008 CMAP test was clean, but the bounce off that level hasn’t exactly been convincing.
- Below 6000, there’s a clear air pocket down to 5980-5960, where a more meaningful support zone kicks in.
- If buyers can hold this range, we might see a reflex bounce back toward 6040-6060, but the pressure is mounting.
Big Picture: Has the Market Topped?
- Sentiment has been complacent—every dip has been bought for weeks. That’s not how major tops usually form.
- But liquidity dynamics are shifting. If big money starts pulling bids, this won’t be just another buy-the-dip setup.
🚨 Key Levels to Watch
📉 Bearish acceleration below 6000 → downside opens fast toward 5980-5960.
📈 Bounce attempt → Watch if 6040-6060 caps the upside.
Final Takeaway
The market’s next move isn’t about what just happened—it’s about who steps in next. If dip buyers fail here, expect volatility to explode as algo-driven selling kicks in.
For deeper insights into liquidity trends driving this move, check out LiquidityTrader.com.
So what’s your call? Mirage or meltdown? Let’s see how this plays out.
